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Financial restructuring of Angola’s largest bank has a monitoring committee

(Photo: Vandre Spellmeier)

The process of financial restructuring of Banco de Poupança e Crédito (BPC), the largest bank in Angola, will be accompanied by an ad-hoc commission appointed by the Minister of Finance, according to an order dated 1 June.

The order indicates that the commission was created taking into account the need to proceed with restructuring and financial reorganisation of the BPC, in line with the guidelines approved by the government under the programme to transform the state-owned bank.

Other assumptions that underpinned the creation of the commission are the safeguarding of state interests in the institution, maintaining depositor confidence and the stability of the Angolan financial system.

BPC is owned by the Angolan state, with 75%, the National Social Security Institute (15%) and the Social Security Fund of the Armed Forces, with the remaining 10%.

The bank ended 2016 with a loss of 29.5 billion kwanzas (US$177 million), due to the need to establish provisions to cover impairments resulting from doubtful loans.

The bank’s report and accounts for 2016 also showed that the board of directors decided to set aside provisions amounting to 72.7 billion kwanzas (US$436 million) in order to clear the balance of doubtful loans and to “definitively” consolidate the credit portfolio.